Diamond Reports Record 2011 Results

Diamond Foods, Inc. (Nasdaq:DMND) today reported record financial results for its fiscal 2011 fourth quarter and full year. For the three months ended July 31, 2011, the first full comparable quarter since the acquisition of Kettle Foods, non-GAAP net income grew 58 percent to $11.9 million and non-GAAP fully diluted earnings per share (EPS) grew 53 percent over the prior year's quarter to $0.52. During the quarter, the Company incurred $9.4 million in acquisition and integration costs related to the purchase of Kettle Foods in 2010 and the pending acquisition of Pringles. Including these charges, GAAP net income grew 27 percent to $8.5 million and GAAP fully diluted EPS was $0.37, up 23 percent. For the twelve months ended July 31, 2011, non-GAAP net income grew 61 percent over the prior year period to $59.0 million and non-GAAP EPS grew 37 percent to $2.61. Including $16.8 million in acquisition and integration costs related to the purchase of Kettle Foods in 2010 and the pending acquisition of Pringles, GAAP earnings grew 92 percent to $50.2 million, and GAAP EPS grew 63 percent to $2.22. "Our base Diamond business delivered record financial results this quarter, with our snack portfolio up a solid 16 percent on an organic basis,"said Michael J. Mendes, Chairman, President and CEO. "We're particularly pleased that we could achieve such strong performance while effectively managing the Pringles integration." Corporate Highlights

• In U.S. measured channels, Emerald snack nuts grew 16 percent while the category was up 3 percent, gaining 100 basis points of market share. Pop Secret grew 5 percent while the category was down 4 percent, gaining 210 basis points of market share.1 Kettle U.S. was up 11 percent while the category was up 2 percent, gaining 10 basis points of market share.2
• Emerald's new Breakfast on the go! continued to gain distribution in the most recent 12 week period. Breakfast on the go! is currently scanning in 75 percent of the ACV in U.S. grocery and contributed 40 percent of the total convenient breakfast category growth during the period.3
• In the U.K., Kettle retail sales grew 10 percent compared to category growth of 6 percent.4 Growth was driven by strong performance in the multi-pack segment and in the Kettle Ridge Crisp line.
• Full year adjusted EBITDA grew 72 percent to $146 million.
• On August 3, 2011, the Company received the last of its antitrust clearances required for its pending merger of the Pringles business into Diamond in a Reverse Morris Trust transaction. The transaction is expected to close in December of this year.
• Significant progress on Pringles integration activities including go-to-market planning, preparing to onboard employees at close, day one readiness and transition services planning.
• A quarterly dividend of $0.045 per share was paid on August 8, 2011 to shareholders of record as of August 1, 2011.

For additional details and the full financial result we refer to the linked News release